Segment Information

9 Months Ended

Sep. 30, 2019

The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition.

The operations of the Oral, Personal and Home Care product segment are managed geographically in five reportable operating segments: North America, Latin America, Europe, Asia Pacific and Africa/Eurasia.

The Company evaluates segment performance based on several factors, including Operating profit. The Company uses Operating profit as a measure of operating segment performance because it excludes the impact of Corporate-driven decisions related to interest expense and income taxes.

The accounting policies of the operating segments are generally the same as those described in Note 2, Summary of Significant Accounting Policies to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation charges and gains and losses on sales of non-core product lines and assets. The Company reports these items within Corporate operations as they relate to Corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments.

Net sales by segment were as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Net sales
Oral, Personal and Home Care
North America	$	869	$	858	$	2,568	$	2,509
Latin America	881		856		2,700		2,718
Europe	607		640		1,798		1,908
Asia Pacific	690		673		2,035		2,106
Africa/Eurasia	248		236		732		734
Total Oral, Personal and Home Care	3,295		3,263		9,833		9,975
Pet Nutrition	633		582		1,845		1,758
Total Net sales	$	3,928	$	3,845	$	11,678	$	11,733

Approximately 70% of the Company’s Net sales are generated from markets outside the U.S., with approximately 50% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe).

The Company’s Net sales of Oral, Personal and Home Care and Pet Nutrition products accounted for the following percentages of the Company’s Net sales:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Net sales
Oral Care	46	%	47	%	46	%	47	%
Personal Care	20	%	20	%	20	%	20	%
Home Care	18	%	18	%	18	%	18	%
Pet Nutrition	16	%	15	%	16	%	15	%
Total Net sales	100	%	100	%	100	%	100	%

Operating profit by segment was as follows:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Operating profit
Oral, Personal and Home Care
North America	$	248		$	259		$	750		$	780
Latin America	235			222			718			757
Europe	153			162			452			480
Asia Pacific	193			191			557			620
Africa/Eurasia	48			41			141			133
Total Oral, Personal and Home Care	877			875			2,618			2,770
Pet Nutrition	169			163			501			492
Corporate	(190		)	(164		)	(496		)	(459		)
Total Operating profit	$	856		$	874		$	2,623		$	2,803

For the three and nine months ended September 30, 2019, Corporate Operating profit (loss) included charges of $26 and $94, respectively, resulting from the Global Growth and Efficiency Program, and costs of $18 in each period related to acquisitions.

For the three and nine months ended September 30, 2018, Corporate Operating profit (loss) included charges of $25 and $107, respectively, resulting from the Global Growth and Efficiency Program.

For further information regarding the Global Growth and Efficiency Program, refer to Note 5, Restructuring and Related Implementation Charges.